Why WEU Campaigns to Abolish Barnett Formula

Dear Member,

Since the foundation of the Workers of England Union, we have campaigned relentlessly for the revision and ultimately the removal of the Barnett Formula. From the outset, we have argued that this outdated funding mechanism is unfair, unequal, and penalises taxpayers in England—ultimately harming workers and local services.

Background

Time and again, we’ve demonstrated how over-generous funding settlements for Scotland, driven by Barnett uplifts, have led to reduced resources for public services in England. Even in Wales, many organisations now call for reform or removal, recognising the disparity between Scottish and Welsh funding.

Now, our long-standing position is being vindicated.

In 2015, the Chartered Institute of Public Finance and Accounting (CIPFA) declared that the Barnett Formula was no longer fit for purpose. The WEU welcomed this assessment and has never stopped calling on the government to abolish this unfair system. It is time Westminster listened to the voices demanding change.

England’s Unfair Share

Despite repeated warnings, the WEU has faced criticism from outdated trade unions and the wider political establishment for daring to say what many know is true: England is not being treated fairly in the allocation of public funds. The old UK trade unions have failed their members in England by refusing to push for funding equality across the UK.

The facts speak for themselves: Scotland currently receives around £2,400 more per person than England under the Barnett system.

To illustrate just how skewed the arrangement is, we have produced a comparative overview showing how your city or county in England fares against Scotland. Explore the data via the Campaign tab on our website.

Recent Spending Review Settlements

• Scotland received a record £50 billion block grant for 2025–26, including £454 million in Barnett consequentials.
• Wales secured an average annual increase of £1.6 billion from 2026–27 to 2028–29.
• Northern Ireland will receive £14 million extra in 2025–26, plus £1.2 billion per year on average—24% more per person than the UK average.

Political Reactions by the Devolved Nations

• Devolved governments argue Barnett fails to reflect actual costs or lost revenues.
• Critics in Scotland, Wales, and Northern Ireland say Barnett doesn’t cover their needs, yet the per capita figures still exceed those for England.
• Parliamentary committees are now probing the system’s transparency and fairness.

England’s and the WEU’s Perspective

1. Lack of a Barnett Mechanism for England

The formula only applies to Scotland, Wales, and Northern Ireland. England—the UK’s largest nation—relies entirely on central Treasury decisions, with no protected or uplifted mechanism.

2. Public Spending Gap

Per capita public spending (2024–25):

• Scotland: ~ £13,400
• Wales: ~ £12,800
• Northern Ireland: ~ £14,200
• England: ~ £11,000

That’s a gap of £2,000–3,000 per person, with no systematic justification.

3. Not Needs-Based

The Barnett Formula distributes funds by population, not need. Poor English counties or cities—such as parts of the North East or coastal towns—receive no special uplift. Experts have long advocated for a needs-based formula that would benefit disadvantaged English areas.

4. Political Fallout in England

Local authorities in England are making deep cuts to public services. Meanwhile, devolved nations retain protected budgets and greater fiscal leeway. The WEU highlights that this is “taxpayers in England subsidising the rest.”

5. Calls for Reform Ignored

Multiple reviews (Holtham Commission, House of Lords) proposed reforms, but successive governments have ducked the issue. Labour’s recent 2025 spending plan left Barnett untouched, despite promises of fairer regional funding.

Conclusion: The Time for Change Is Now

To be clear:

• Taxpayers in England contribute most to the UK Treasury’s budget and receive less per head.
• Deprived English areas are overlooked by the current funding model.
• There’s increasing pressure to either create an England equivalent to Barnett or reform UK-wide funding to reflect genuine need.

The Barnett Formula is broken and must be replaced with a system that serves all UK citizens equally. The WEU demands fairness for taxpayers in England. Please share this campaign with your friends and family.

Campaigning for fair funding for England.

workersofengland.co.uk | Independent Workers Trade Union